What does the term "equitable conversion" imply for the buyer in a land sale contract?

The term "equitable conversion" refers to a legal doctrine that impacts the rights of the buyer and seller in a land sale contract. When the doctrine of equitable conversion applies, the buyer is considered the equitable owner of the property as soon as the contract is executed, even though the legal title has not yet transferred. This means that the buyer has rights and interests in the property during the period leading up to closing, which includes rights to enjoy the property and potentially to receive profits from it.

The implications of equitable conversion can also affect risk of loss and obligations for property upkeep, with generally the buyer bearing those responsibilities once the contract is in place. This principle reflects the idea that once a buyer and seller have entered into a binding contract, the buyer should be treated as the owner in equity, even if the formal transfer of legal title is pending.

This understanding clarifies that the buyer's status changes from a mere prospective purchaser to an equitable owner of the property, which substantially influences their rights and responsibilities in relation to the property prior to closing.